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Can someone explain why they're doing this? I'm so used to tech companies merging and acquiring one another. What does IBM gain by splitting up?
by CivBase 6y ago
Can someone explain why they're doing this? I'm so used to tech companies merging and acquiring one another. What does IBM gain by splitting up?
- deleted 6y ago[deleted]
- goatinaboat 6y agoWhat does IBM gain by splitting up? They isolate the compensation of senior management from the company’s debts and liabilities, which will by pure coincidence be in the “other” company.
- jpttsn 6y agoStonks. Sometimes the market will value the parts higher than the sum of the parts. It sounds a bit concocted but happens often in practice.
- theonemind 6y agoWell, maybe the parts are worth more than the sum of the parts. I remember AOL and Time Warner merged, then dropped the entire value of AOL. (Though you could argue the market was still just irrationally overvaluing them as parts and adjusted down when they merged.)